Gaming and Leisure Properties was prepared for another run-of-the-mill investor’s call Friday when its world exploded Thursday with the news that Bally’s was being taken over by Standard General.

Thus, the Q&A portion of GLPI’s 2Q24 investor’s call focused on Bally’s relationship with GLPI, notably the company’s deal in Chicago. GLPI President and CEO Peter Carlino said it would be business as usual in Chicago and other sites where the companies had a working relationship.’

“We have some knowledge of what is planned there, assisting the strong Bally’s team with coming up with something that makes a lot of sense,” Carlino said. “The key to any project like this is being on budget and on time. I think we have pretty strong record of accomplishing that. Look, we’ve looked carefully at the market and competition and so forth.

“Despite that and some of the more egregious things in eight years past that the former governor Rod Blagoievich said …  I think we feel pretty confident in this project. We’ve spent a lot of time looking at it. We like the sponsorship with Bally’s, we’ll have a seat at the table assisting and being helpful in a project that is going to be successful. We feel pretty good about it.”

GLPI closed with total revenue of $380.6 million in 2Q24 compared to $356.6 million in 2Q23. Net income was $214.4 million compared to $160.1 million in the second quarter of 2023.   We’re not afraid to do business in the state.”

That said, GLPI is in the dark about Bally’s deal,

“We know what you know,” said GLPI Chief Operating Officer Brandon Moore of the Bally’s transaction. “We haven’t been under the tent with it. We want to understand more about it. But I don’t think it changes anything.”

Nor will Bally’s transaction have a snowball effect on the industry.

“I don’t think anybody’s sitting on the sidelines,” Carlino said. “Every transaction has a reason. Sometimes it’s an estate reason, sometimes it’s a liquidity reason. Sometimes lord knows what might drive someone to make that choice.”

But what will not happen is GLPI making a rash decision based on speculation. The company will go ahead with its plans for Chicago — Moore said GLPI will forge ahead with it’s plans for development there — and Carlino said that any plans GLPI has for the development of the Las Vegas site and the Oakland A’s will also proceed as planned.

If something else comes up that fits the company’s profile, expect GLPI to be involved.

“If we need a bigger plate,” Carlino said, “we’ll get a bigger plate.”

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